Finnish / Swedish politicians on Twitter were thumping their chests in defiance on US resumption of sanctions on Iran. I called them out on it back then, stating that businesses will eventually fall in line in order not to lose out on the US market. I was of course right. Any armchair pundit could have called that one.
GERMAN EXPORTS TO IRAN DROP BY HALF IN FIRST 6 MONTHS DUE TO U.S. SANCTIONS
The collapse in business suggests companies are scaling back business ties with Tehran to avoid trouble with the United States after Washington reimposed sanctions.
The US classifies Iran’s regime as the leading international state-sponsor of terrorism. Sales to Iran plunged by 48% to 678 million euros ($758.8 million) from January through June year-on-year, according to data from the Federal Statistics Office. Imports from Iran declined by 43% to nearly 110 million euros.
“The fact that trade between Iran and Germany has collapsed that massively is not a big surprise, unfortunately,” the BGA trade association said.
It pointed to the extra-territorial character of recent U.S. sanctions, which means that companies from other countries are also punished if they do business with Iran.
“German companies are forced to choose between their market activities in Iran and the United States, so it’s clear which market is preferred,” BGA said
